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Case Title:

Lowe's, AMD, Target et al: The Second-mover Advantage?

Publication Year : 2006

Authors: Kisholoy, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics

Region:

Case Code: COM0116

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In the world of business, the pioneer or the first-mover in an industry often fails to stand up to the competition from its follower or the second-mover due to its failure to constantly innovate or to take timely and effective competitive decisions. The first-movers tend to cling on to their time-tested strategies, which yield positive results when they are the sole entity in a particular market - a phenomenon known as 'active inertia'. This leads to a decline in their financial position and sometimes put their existence in jeopardy. The second-movers, on the other hand, have been found to gain from the experiences of the pioneer and take full advantage of the pioneer's weaknesses and strategic mistakes.

Pedagogical Objectives:

  • To understand the challenges that a pioneer faces in any industry and the factors that determine the sustainability of its leadership
  • To analyse the various constraints of the first-movers, which are taken advantage of by the second-movers to strengthen their positions
  • To discuss how the first-movers can protect their lead in an industry by keeping competition at bay.

Keywords : First mover's disadvantage; Second mover's advantage; Wal-Mart vs Target; Motorola vs Nokia; Intel vs AMD; Sony vs Samsung; Home Depot vs Lowe's; Marketing myopia; Active inertia; Value innovation; Pioneer-Migrator-Settler map; Competitive Strategies Case Study; New Value Curve; 'Caffeine-induced Oasis'; Core competency development

Contents : 
FirstMover’s Disadvantage or Second Mover’s Advantage?
Comparative Customer Perceptions of Target and Wal-Mart
Nokia 8200 Series and Features
Mobile Phone Market Share
Home Depot vs Lowe’s
Top 10 Global Speciality Retailers
A Bug Called Active Inertia
Customer Evolution: Towards Proactivity

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